Yes, you are correct. You do not have to remove earnings because you withdrew the 2020 excess after the due date of the 2020 tax return.
“If it is too late to make a corrective distribution, a taxpayer may be able to eliminate an excess contribution simply by making ordinary distributions. For a traditional IRA, the excess contribution is reduced by an amount equal to the portion of an ordinary distribution that is includible in gross income (but not reduced by the return of investment). For a Roth IRA, the excess contribution is reduced by the entire amount of the distribution. In neither case is there a need to distribute the IRA income earned on the excess contribution.” (Correcting excess contributions to IRAs by Vorris J. Blankenship)
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